0203 term 2 no.2 (wth comments) - Part 1(Q1 First let us...

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Part 1 (Q1) First, let us take a look at the aims that Adrian would probably have. The primary aim for Adrian would definitely be to seek a refund of the price that he had paid for the photo development and to claim damages due to the breach of contract. These damages would include, firstly, the cost of the 5 rolls of film, secondly, the travel expenses incurred in taking the photographs, and thirdly the loss of the potential contract with Chic Corporation. Before we look to the possibilities of the claims for damages and refund, let us first examine the contract between Adrian and Best Photos. Offer and acceptance of the contract took place when Adrian had paid the $200 to Best Photos for the rendering of the service. The consideration supplied by Adrian would be the executed consideration of paying $200 in return for Best Photos’ promise to develop the photos. We can see that consideration is not an issue in this case. Adrian and Best Photos are also the parties to the contract and there would therefore not be any privity issues. There are also intentions to create legal relations as we can see that Adrian and Best Photos are not related by blood and are dealing on a consumer and service provider basis. For there to have been a breach of contract, we would have to examine the terms of relevance to us. We can imply the terms stating “Best Photos should take reasonable care of the negatives left in their possession” and “Best Photos should exercise reasonable skill in developing the photographs”. This term can be implied into the contract by the officious bystander test whereby if an outsider to the contract had asked the parties during the time of contract formation the question Should Best Photos take reasonable care of the negatives left in their possession?” and “Should Best Photos exercise reasonable skill in developing the photographs?”, the answers would be yes by both parties. We can see that Best Photos had breached these contract terms when they had damaged the negatives and developed partially exposed photographs, meaning that they had not taken reasonable care of the negatives left in their possession and exercised reasonable skill in processing the photographs. Through the breach of these contract terms where no legal excuse can be found, we can conclude that Adrian will be able to claim damages. The damages that he would be interested in have been listed above. To claim damages for each of the items, we would have to establish that the loss was caused by the breach, that the loss is not to remote and that Adrian had mitigated his losses. For the damage to the negatives, we can see that this damage was a direct result of Best Photo’s breach of the contractual term of taking reasonable care of the negatives left in their possession. This loss is also not too remote as we can see that if Best Photos had damaged the negatives, it is foreseeable that the loss
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suffered would be the cost of the negatives. This is under the first limb of the Hadley v Baxendale two-limb test, where the loss is naturally flowing. In this
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  • Fall '15
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